Czech shoppers cling to cash‑on‑delivery and heavy discounts, raising e‑commerce costs

Cash‑on‑delivery (COD) remains popular in the Czech Republic, accounting for roughly one‑third of online orders despite being one of the most expensive payment methods for retailers. Upgates marketing manager Michal Benatzky explains that COD is chosen mainly for trust on first or lesser‑known purchases: “Customers need to verify that the shop actually works and the goods arrive.” Uncollected parcels increase carrier fees (15‑20 CZK per delivery) and transaction costs, driving up prices for all customers.

At the same time, Czech consumers are the most discount‑driven shoppers in Europe. NielsenIQ data presented by CEO Karel Tyra shows that 58.6 % of grocery and drugstore spending occurs during promotions, with 64 % actively seeking discounts – about two percentage points higher than a year ago. This habit is reshaping retailer loyalty, as shoppers switch to any outlet offering better deals, intensifying competition among chains such as Penny Market, Tesco and Lidl.